Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia

Research Article

The Effect of Instagram on Customer Relationship, Customer Equity, and Purchase Intention Towards Luxury Fashion Brands

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  • @INPROCEEDINGS{10.4108/eai.27-7-2021.2316834,
        author={Dewidya  Natiqa and Nurrani  Kusumawati and Fitri  Aprilianty},
        title={The Effect of Instagram on Customer Relationship, Customer Equity, and Purchase Intention Towards Luxury Fashion Brands},
        proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICE-BEES},
        year={2022},
        month={3},
        keywords={customer equity customer relationship instagram luxury fashion brands purchase intention},
        doi={10.4108/eai.27-7-2021.2316834}
    }
    
  • Dewidya Natiqa
    Nurrani Kusumawati
    Fitri Aprilianty
    Year: 2022
    The Effect of Instagram on Customer Relationship, Customer Equity, and Purchase Intention Towards Luxury Fashion Brands
    ICE-BEES
    EAI
    DOI: 10.4108/eai.27-7-2021.2316834
Dewidya Natiqa1,*, Nurrani Kusumawati1, Fitri Aprilianty1
  • 1: Institut Teknologi Bandung, Indonesia
*Contact email: dewidya_natiqa@sbm-itb.ac.id

Abstract

As the usage of online shopping platforms becomes more important for today’s society, luxury fashion brands are prompting to adopt online selling as their distribution channels. Especially in adopting social media marketing on the Instagram platform. However, social media usage brings a dilemma and hesitation to luxury fashion brands because of the different characteristics between social media and the luxury fashion brand itself. Adding that, a lack of studies discusses how luxury fashion brands should use their Instagram to have more effective marketing strategies to manage their customer relationships and customer equity. In response to this situation, this research was conducted to assess the effect of Instagram on building customer relationships and customer equity, which, in return, stimulating purchase intention. A quantitative approach through the questionnaire-survey method was performed in this research, where this research uses descriptive statistics, MANOVA-SPSS, and PLS-SEM to analyze the data. As a result, this research can answer the dilemma of using social media which shows the positive contribution of social media marketing on customer relationships and customer equity, were in the end, creating purchase intention. These findings contribute to maximize the usage on Instagram and give recommendations on how to deliver luxury values to the market.